Joe arrived early as usual to the current state work sessions scheduled by Larry. As he greeted Larry, Joe asked, “So Larry, if you start your Lean Sigma journey, how will you know you’re getting better?”
Larry looked puzzled. “Well I thought it’d be obvious. Won’t our KPIs tell us?” Larry replied.
“They should, but having the base-line or current state or base-line Key Performance Indicators documented is critical to show the long term success. So what are your high level KPIs and how will you show improvement?” Joe asked.
Joe and Larry continued their dialog. Larry indicated that the primary key measures are sales revenue, and Earnings Before Income Taxes and Adjustments (EBITA). If sales and EBITA ...